Layoffs hit NeurogesX after FDA rejects pain patch for HIV patients

NeurogesX Inc. will cut 57 percent of its workforce after the Food and Drug Administration Wednesday rejected the use of the company's Qutenza pain patch for some HIV patients.
The San Mateo company (NASDAQ: NGSX) said the restructuring will lower its quarterly cash burn to $5.5 million to $6.5 million in 2012. The move comes as NeurogesX expects lower revenue from Qutenza and as it hopes to push another pain treatment, NGX-1998, through a Phase III trial by the end of the year.